Network marketing opportunities usually present themselves as “home based business”. They often advertise with slogans like; “Be your own boss” and “set your own hours”, etc. But can you really be your own boss with one of those companies?
One of the bigger disadvantages to a network marketing company is that you will have no control over certain aspects of the business. The most notable thing is the compensation plan. If you start your own business from scratch, you will control that (among all other aspects of the business). You will make the decision when to pay yourself and how much to pay yourself.
Contrast that to a network marketing company where those kinds of decisions are made without your involvement. Compensation decisions are made by principals of the company and leave you with little choice in the matter – other than working with their decisions. Furthermore, management of a network marketing company can change the compensation plan at any time which may leave the business rep worse off.
For example, one certain network marketing company stopped paying commission entirely on its two most popular products. They cited “tight margins” as a reason for this, but its distributors were left to try to make money off the less popular products.
So before you buy into in network marketing opportunity, make sure you give this serious consideration. Will you be willing to relinquish control of this important aspect in favor of some other advantages they might be offering?